HB2242 - 452R - House Bill Summary

House of Representatives

HB 2242

sales tax returns; due dates

Sponsor: Representative May

DPA S/E	Committee on Ways and Means
DPA s/e	Caucus and COW
X	Third Read
	As Passed the House

HB 2242 makes the due date for transaction privilege (sales) taxes the final business day of the month. This bill contains a strike-everything amendment that clarifies lawn maintenance services are not prime contracting activities.

Current Status

HB 2242 was passed in the Ways and Means Committee with the strike-everything amendment that clarifies lawn maintenance services are not prime contracting activities. HB 2242 passed Committee of the Whole with the strike-everything amendment.

History of proposed strike-everything amendment

In May 2001, DOR released Arizona Transaction Privilege Tax Ruling TPR 01-1 that provided interpretive guidance to clarify lawn maintenance activities that constitute nontaxable service activities, taxable retail sales and taxable prime contracting activities. This ruling stated that certain maintenance activities are interpreted as taxable contract activities, such as replacing seasonal flowers or broken sprinkler heads.

The strike-everything amendment proposes to statutorily provide further clarity on these activities.

Provisions of strike-everything amendment

· Stipulates that the gross sales or gross proceeds of income received from lawn maintenance services are not subject to the prime contracting classification and defines lawn maintenance service.

· Clarifies that the gross sales or gross proceeds of income received from landscaping activities are subject to the prime contracting classification and defines landscaping.

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· 45th Legislature